Economics 0455 · IGCSE · Price determination

Price determination — practice question

In the centre of a city, several cafés sell snacks and drinks. Some of these cafés close because their owners retire. What is the likely effect on the prices and profits of the cafés that stay open?

  • Aprices decrease; profits decrease
  • Bprices decrease; profits increase
  • Cprices increase; profits decrease
  • Dprices increase; profits increase

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